BUL 4421 Gendler Midterm Review FAU Questions and Answers Latest Update 2025/2026
Relevant areas of business law - Answers 1. Agency Law
2. Contracts
3. Employment and Labor Law
4. Employment Discrimination
Relevant areas of business law are applicable to - Answers Human Resource Management
Private Law - Answers Regulates disputes between private individuals or groups
Public Law - Answers Regulates disputes between private individuals and government
Civil Law - Answers Delineates the rights and responsibilities implied in relationships between
persons and between persons and their government
Criminal Law - Answers Regulates incidents which someone commits an act against the public
as a whole
Hierarchy of Laws - Answers 1. US Constitution
2. Federal Statutes
3. State Constitution
4. State Statutes
5. Common Law
Common Law - Answers Collection of legal interpretations made by judges, and are law unless
revoked by new statutory law
Precedent - Answers Past decisions in similar cases that guide later decisions thereby providing
greater stability and predictability to the law
Stare Decisis - Answers In which rulings made in higher courts become binding precedent for
lower courts
"Standing by their decision" - Answers Stare Decisis
When courts rely on precedent, they are obeying the principle of - Answers Stare Decisis
Restatement of the Law - Answers Summaries of common law rules in a particular area of the
law that have been enacted in most states
Schools of Jurisprudence - Answers Natural Law, Legal Positivism, Historical School, Legal
,Realism and Cost Benefit Analysis
Natural Law - Answers Describes certain ethical laws and principles believed to be morally right
and "above" the laws devised by humans
Legal Positivism - Answers Sees our proper role as obedience to duly authorized law, and the
law is distinct from morality
Historical School - Answers Following tradition or custom to shape the law, closely linked with
the doctrine of stare decisis
Legal Realism - Answers Judges should consider more than just the law; consider factors such
as social and economic conditions
Cost Benefit Analysis - Answers If law yields more benefits than costs then we saved resources
we can use to obtain more goods and services
Business Ethics - Answers The application of ethics to the special problems and opportunities
experienced by business people
Minimal Standards for firms to be ethical - Answers - The legality of the decision in choosing a
method of production
- How to compete with competing firms
- Social responsibilities of the firm
WPH Framework for Business Ethics - Answers - Who would this decision affect?
- What is the Purpose of the decision?
- What are the guidelines on How to make the decision?
The "WPH" in WPH Framework for Business Ethics stands for - Answers Who, Purpose and How
Stakeholders - Answers The many groups of people affected by the firm's decisions
Who are stakeholders of a firm? - Answers - Owners or shareholders
- Employees
- Customers
- Management
- The general community where the firm operates
- Future generations
, When we think about the ultimate reason or purpose for why we make decisions in a business
firm, we turn to the basic unit of business ethics, which is - Answers Values
Values - Answers Positive abstractions/notions that capture our sense of what is good or
desirable
Values are _____ that underlie conversations about business ethics - Answers Ideas
We derive our ethics from the - Answers Interplay of values
Values represent our understanding of the purposes we will fulfil by - Answers Making particular
decisions
Golden Rule - Answers Do unto others as you would have them do unto you
Public Disclosure - Answers If the public knew about this decision, how would you decide?
Warren Buffet's example of a Public Disclosure - Answers Newspaper Test
Universalization Test - Answers What would the world be like were our decision copied by
everyone else?
Theories of Business Ethics - Answers Ethical Realism, Absolutism, Consequentialism,
Utilitarianism, Principle of Rights, Virtue Ethics
Ethical Realism - Answers A theory of ethics that denies the existence of objective standards,
instead individuals must evaluate actions based on what they feel is best for themselves
Absolutism - Answers Requires that individuals defer to a set of rules to guide them in the
ethical decision-making process
Consequentialism - Answers Requires inquiry about the consequences of the decision when
addressing ethical dilemmas
Utilitarianism - Answers Managers should take actions that provide the greatest good after
having subtracted the harm associated with the action in question
Principle of Rights - Answers Whether a business decision is ethical depends on how the
decision affects those involved
Virtue Ethics - Answers The development of virtues, or positive character traits such as courage,
justice, and truthfulness is the basis of morality
Voir Dire - Answers This process selects the jurors who will decide the cases as well as two or
three "alternate jurors"
Peremptory Challenges - Answers Allows a party to challenge a certain number of potential
jurors without giving a reason
Relevant areas of business law - Answers 1. Agency Law
2. Contracts
3. Employment and Labor Law
4. Employment Discrimination
Relevant areas of business law are applicable to - Answers Human Resource Management
Private Law - Answers Regulates disputes between private individuals or groups
Public Law - Answers Regulates disputes between private individuals and government
Civil Law - Answers Delineates the rights and responsibilities implied in relationships between
persons and between persons and their government
Criminal Law - Answers Regulates incidents which someone commits an act against the public
as a whole
Hierarchy of Laws - Answers 1. US Constitution
2. Federal Statutes
3. State Constitution
4. State Statutes
5. Common Law
Common Law - Answers Collection of legal interpretations made by judges, and are law unless
revoked by new statutory law
Precedent - Answers Past decisions in similar cases that guide later decisions thereby providing
greater stability and predictability to the law
Stare Decisis - Answers In which rulings made in higher courts become binding precedent for
lower courts
"Standing by their decision" - Answers Stare Decisis
When courts rely on precedent, they are obeying the principle of - Answers Stare Decisis
Restatement of the Law - Answers Summaries of common law rules in a particular area of the
law that have been enacted in most states
Schools of Jurisprudence - Answers Natural Law, Legal Positivism, Historical School, Legal
,Realism and Cost Benefit Analysis
Natural Law - Answers Describes certain ethical laws and principles believed to be morally right
and "above" the laws devised by humans
Legal Positivism - Answers Sees our proper role as obedience to duly authorized law, and the
law is distinct from morality
Historical School - Answers Following tradition or custom to shape the law, closely linked with
the doctrine of stare decisis
Legal Realism - Answers Judges should consider more than just the law; consider factors such
as social and economic conditions
Cost Benefit Analysis - Answers If law yields more benefits than costs then we saved resources
we can use to obtain more goods and services
Business Ethics - Answers The application of ethics to the special problems and opportunities
experienced by business people
Minimal Standards for firms to be ethical - Answers - The legality of the decision in choosing a
method of production
- How to compete with competing firms
- Social responsibilities of the firm
WPH Framework for Business Ethics - Answers - Who would this decision affect?
- What is the Purpose of the decision?
- What are the guidelines on How to make the decision?
The "WPH" in WPH Framework for Business Ethics stands for - Answers Who, Purpose and How
Stakeholders - Answers The many groups of people affected by the firm's decisions
Who are stakeholders of a firm? - Answers - Owners or shareholders
- Employees
- Customers
- Management
- The general community where the firm operates
- Future generations
, When we think about the ultimate reason or purpose for why we make decisions in a business
firm, we turn to the basic unit of business ethics, which is - Answers Values
Values - Answers Positive abstractions/notions that capture our sense of what is good or
desirable
Values are _____ that underlie conversations about business ethics - Answers Ideas
We derive our ethics from the - Answers Interplay of values
Values represent our understanding of the purposes we will fulfil by - Answers Making particular
decisions
Golden Rule - Answers Do unto others as you would have them do unto you
Public Disclosure - Answers If the public knew about this decision, how would you decide?
Warren Buffet's example of a Public Disclosure - Answers Newspaper Test
Universalization Test - Answers What would the world be like were our decision copied by
everyone else?
Theories of Business Ethics - Answers Ethical Realism, Absolutism, Consequentialism,
Utilitarianism, Principle of Rights, Virtue Ethics
Ethical Realism - Answers A theory of ethics that denies the existence of objective standards,
instead individuals must evaluate actions based on what they feel is best for themselves
Absolutism - Answers Requires that individuals defer to a set of rules to guide them in the
ethical decision-making process
Consequentialism - Answers Requires inquiry about the consequences of the decision when
addressing ethical dilemmas
Utilitarianism - Answers Managers should take actions that provide the greatest good after
having subtracted the harm associated with the action in question
Principle of Rights - Answers Whether a business decision is ethical depends on how the
decision affects those involved
Virtue Ethics - Answers The development of virtues, or positive character traits such as courage,
justice, and truthfulness is the basis of morality
Voir Dire - Answers This process selects the jurors who will decide the cases as well as two or
three "alternate jurors"
Peremptory Challenges - Answers Allows a party to challenge a certain number of potential
jurors without giving a reason
